IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Monetary policy instruments for developing countries

  • Caprio, Gerard
  • Honohan, Patrick

In developing countries, the evolution of financial markets and growing disenchantment with directed credit programs and bank-by-bank credit ceilings have increased the interest in examining and moving to indirect methods of implementing monetary policy. The authors provide an overview of the policy issues developing countries face in light of industrial country experience in the last two decades. They discuss the objectives of monetary policy and how these have evolved in recent years, and they describe the different policy instruments that have become available to monetary authorities and how these instruments can be used to cope with the main shocks affecting monetary policy : government deficit financing and those related to external flows. Shifting from direct ways of controlling monetary policy is not universally appealing. Direct controls are simple to operate and seem to offer a sure handle on overall credit or money growth. Moving away from direct controls often involves a fundamental reorientation of central bankers and government officials, not only toward directed credit but toward the financing of government debt. Not every country is in a position to immediately apply the experience gained by industrial countries in operating indirect methods of monetary control. However, more and more monetary authorities can be expected to follow the lead taken especially by several Asian economies.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/1990/10/01/000009265_3960930035738/Rendered/PDF/multi0page.pdf
Download Restriction: no

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 528.

as
in new window

Length:
Date of creation: 31 Oct 1990
Date of revision:
Handle: RePEc:wbk:wbrwps:528
Contact details of provider: Postal: 1818 H Street, N.W., Washington, DC 20433
Phone: (202) 477-1234
Web page: http://www.worldbank.org/
Email:


More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Alfred Broaddus, 1985. "Financial innovation in the United States - background, current status and prospects," Economic Review, Federal Reserve Bank of Richmond, issue Jan, pages 2-22.
  2. Nouriel Roubini, 1988. "Offset and Sterilization Under Fixed Exchange Rates With An Optimizing Central Bank," NBER Working Papers 2777, National Bureau of Economic Research, Inc.
  3. Alfred Broaddus, 1985. "Financial innovation in the United States -- background, current and prospects," Working Paper 85-02, Federal Reserve Bank of Richmond.
  4. Ben Bernanke, 1988. "Monetary policy transmission: through money or credit?," Business Review, Federal Reserve Bank of Philadelphia, issue Nov, pages 3-11.
  5. Goodhart, Charles, 1989. "The Conduct of Monetary Policy," Economic Journal, Royal Economic Society, vol. 99(396), pages 293-346, June.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:528. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.